U.S. crude oil prices have been falling for the past two years and some claim that prices may not change until 2019, when oil production will reach its peak. Ever since the global oil-price collapse, oil has become a lot more affordable for consumers, hitting a two-month low on Wednesday, July 20th. As a result of excess oil productions, many suspect that oil prices may go back to $20 per barrel while others predict prices to reach $80 a barrel because the excess is overestimated.
Due to global instability and the struggling economy, oil prices may not rise for the next few years. This is because the economy runs on energy and with a rise in crude oil, energy reliant systems including transportation, communication, and cooling/heating systems would be unaffordable, causing the economy to suffer. Economic growth is dependent on energy, so oil producers would not make a significant profit at high oil prices because the cost of doing business would be higher, causing economic growth to slow.
Although oil prices and production depends on economic growth for profits, it also relies on investors. The UK vote to exit from the European Union has caused uncertainty for investors on the Brexit's impact on UK, European Union, and US currencies. This will most likely cause oil production to decrease due to the lack of investors in crude oil. With the continued changes in the global economy, the future of oil prices remains uncertain, bringing more attention to renewable energy resources.